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Annual Report & Accounts 2012-13

COAL INDIA LIMITED A Maharatna Company

Contents005 Members of the Board

006 Management During 2012–2013

007 Bankers, Auditors and Regd. Offi ce

008 AGM Notice

013 Chairman’s Statement

019 Performance of CIL at a glance(Graphical Representation)

023 Operational Statistics

036 Brief Profi le of Directors

041 Director’s Report

081 Comments of Comptroller &Auditor General of India

082 Auditors’ Report & Management’s Reply

104 Report on Corporate Governance

128 Secretarial Audit Report

131 Sustainable Development Report

132 Management Discussion and Analysis

145 Consolidated Accounts ofCIL & its Subsidiaries

195 Standalone Accounts of CIL

00.TOC 2012-13 of CIL_001-004.indd 001 7/25/2013 5:01:35 PM

GREEN INITIATIVE IN CORPORATE GOVERNANCE

Dear Shareholder,

Pursuant to the initiative taken by Ministry of Corporate Affairs, encouraging the companies to reduce the carbon footprint by enabling them to send the Annual report etc to the Shareholders through electronic mode, your company has already taken the following steps

1. Emails have been sent to all those shareholders who have registered their emails ids with CDSL, NSDL or our Share Transfer Agent intimating them that all future communication including notice of Annual General Meeting and the Annual report shall only be sent to them at their registered email. They were further requested to intimate if they wish to receive these communication physically.

2. Individual letters have been sent to shareholders who have not registered their emails ids and also to those shareholders from whom emails have bounced back requesting them to register their email ids to enable the company to send the future communication including Annual report etc through email.

After seeking response of the Shareholders, individual emails have been sent to all shareholders who have not exercised the option to receive the Annual Report for 2012–13 in physical mode. They have been provided with a link (URL) to the website of COAL INDIA LIMITED for downloading the Annual report 2012–13.

In case you have not yet registered your email id, we urge you to kindly furnish your email id to M/s Karvy Computershare Pvt Ltd(R&T Agent of Coal India Ltd) at their address indicated in the report elsewhere Or email at [email protected]. Please ensure that you have indicated your Folio No/DP & Client ID No as well as your consent to receive future communications from Coal India Ltd including Annual Reports etc through email at your registered email address.

Please help us to save the environment.

M.Viswanathan

Company Secretary

00.TOC 2012-13 of CIL_001-004.indd 002 7/25/2013 3:54:17 PM

MISSIONTo produce and market the planned quantity of coal and coal products effi ciently and economically in an eco-friendly manner with due regard to safety, conservation and quality.

VISIONTo emerge as a global player in the primary energy sector committed to provide energy security to the country by attaining environmentally & socially sustainable growth through best practices from mine to market.

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004 ANNUAL REPORT & ACCOUNTS 2012–13

Board of Directors

Permanent Invitees

Shri S.Narsing Rao

Dr. R.N. Trivedi Dr. Mohd. Anis Ansari Shri Kamal R Gupta Smt. Sachi Chaudhuri

Shri R Mohan Das Shri N.Kumar Shri B.K.Saxena Shri A. Chatterjee

Shri A.N.Sahay Shri A.K.Debnath

Dr A.K.Dubey Smt. Sujata Prasad Prof S.K.Barua Dr. (Smt.) Sheela Bhide

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ANNUAL REPORT & ACCOUNTS 2012–13 005

Members of the Boardas on 26th June, 2013

Functional Directors:

Shri S.Narsing Rao : Chairman

Shri R. Mohan Das : Personnel & Industrial Relations

Shri N. Kumar : Technical

Shri B.K.Saxena : Marketing

Shri A. Chatterjee : Finance

Part-Time Offi cial Directors:

Dr A.K.Dubey : Additional Secretary, MoC, New Delhi.

Smt. Sujata Prasad : Joint Secretary & Financial Advisor, MoC, New Delhi

Independent Directors:

1. Prof. S. K. Barua

2. Dr. R. N. Trivedi

3. Dr.(Smt) Sheela Bhide

4. Dr. Mohd. Anis Ansari

5. Shri Kamal R.Gupta

6. Ms.Sachi Chaudhuri

Permanent Invitees:

Shri A.N.Sahay : Chairman-cum-Managing Director, MCL.

Shri A.K.Debnath : Chairman-cum-Managing Director, CMPDIL

Company Secretary:

M.Viswanathan

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Coal India Limited. A Maharatna Company

Management During 2012–13

Shri S.Narsing Rao : Chairman (From 24.04.2012)

Ms .Zohra Chatterji : Chairman [Additional Charge] (From 01.02.2012 till 23.04.2012)

Functional Directors

Shri R. Mohan Das : Director (P&IR) (From 01.06.2007)

Shri N.Kumar : Director (Technical) (From 01.02.2012)

Shri B.K.Saxena : Director (Marketing) (From 19.06.2012)

Shri A K Sinha : Director (Finance) (From 13.03.2010 till 31.10.2012)

Shri A.Chatterjee : Director (Finance) (From 01.11.2012)

Part Time Offi cial Directors

Ms. Zohra Chatterji : Additional Secretary, Ministry of Coal (From 12.11.2011 till 31.01.2013)

Ms. Anjali Anand Srivastava : Joint Secretary & Financial Advisor (From 20 .01.2011)

Independent Directors

Prof. S. K. Barua : (From 24.08.2007)

Dr. A.K. Rath : (From 27.04.2010)

Dr. (Smt.) Sheela Bhide : (From 04.08.2010)

Shri Kamal R. Gupta : (From 04.08.2010)

Dr. R.N. Trivedi : (From 24.08.2010)

Dr. Mohd. Anis Ansari : (From 24.08.2010)

Ms. Sachi Chaudhuri : (From 24.08.2010)

Permanent Invitees

Shri D.C. Garg : CMD, Western Coalfields Limited (From 21.08.2008)

Shri A.K.Singh : CMD, Central Mine & Design Institute Limited (From 21.08.2008 till 31.07.2012)

Shri D.P.Pande : Addl. Member (Traffic Transportation) Railway Board (From 12.07.2012)

Company Secretary:

Shri M.Viswanathan : (From 14.12.2011)

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Bankers, Auditors and Regd. Office

Bankers

1. STATE BANK OF INDIA

2. PUNJAB NATIONAL BANK

3. UNITED BANK OF INDIA

4. CANARA BANK

5. ALLAHABAD BANK

6. UNION BANK OF INDIA

7. BANK OF BARODA

8. BANK OF INDIA

9. ORIENTAL BANK OF COMMERCE

10. HDFC BANK

11. ICICI BANK

12. HSBC LTD

13. ROYAL BANK OF SCOTLAND

14. STANDARD CHARTERED BANK

15. BNP PARIBAS

16. CITI BANK

17. DEUTSCHE BANK

18. UCO BANK

19. BANK OF MAHARASHTRA

20. CENTRAL BANK OF INDIA

21. IDBI BANK

Statutory Auditor

De Chakraborty & Sen

Chartered Accountants

Bikaner Buildings, 1st Floor,

8-B, Lalbazar Street

Kolkata-700001

Phone: 22300171/5604

E-mail:[email protected]

Registered Offi ce

Coal Bhawan

10 Netaji Subhas Road

Kolkata 700001Phone No: +91-33-22488099, Fax: +91-33-22435316

Website

www.coalindia.in

03.Bankers, Auditors and Regd 2012-13 of CIL_007-007.indd 007 7/25/2013 3:55:21 PM



NOTICE

Dated : 26th June 2013

Notice of the Thirty-Ninth Annual General Meeting of Coal India Limited

Notice is hereby given to the Members of Coal India Limited that the Thirty-Ninth Annual General Meeting of the Company will be held on Wednesday, the 18th September 2013 at 10.30 A.M at Science City, Main Auditorium, JBS Haldane Avenue, Kolkata-700046 to transact the following business.

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2013, Profit and Loss Account for the financial year ended on that date together with the Reports of Statutory Auditor & Comptroller & Auditor General of India and Directors’ Report.

2. To confirm payment of Interim dividend paid and to declare Final Dividend on equity shares for the Financial Year 2012–13.

SPECIAL BUSINESS:

ITEM No 3.

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT Dr A.K.Dubey, who was appointed as an Additional Director under Section 260 of the Companies Act, 1956 effective from 3rd April, 2013 and holds office upto the 39th Annual General Meeting and in respect of whom, the company has received a notice in writing under Section 257 of the Companies Act, 1956 from a member proposing his candidature to the office of director, be and is hereby appointed as a Director of the Company, liable to retire by rotation.”

ITEM No 4


“RESOLVED THAT Smt. Sujata Prasad, who was appointed as an Additional Director under Section 260 of the Companies Act, 1956 effective from 3rd May, 2013 and holds office upto the 39th Annual General Meeting and in respect of whom, the company has received a notice in writing under Section 257 of the Companies Act, 1956 from a member proposing her candidature to the office of director, be and is hereby appointed as a Director of the Company, liable to retire by rotation.”

ITEM No 5


“RESOLVED THAT Shri A. Chatterjee, who was appointed as an Additional Director under Section 260 of the Companies Act, 1956 effective from 1st November, 2012 and holds office upto the 39th Annual General Meeting and in respect of whom, the company has received a notice in writing under Section 257 of the Companies Act, 1956 from a member proposing his candidature to the office of director, be and is hereby appointed as a Director of the Company, not liable to retire by rotation.”

By order of the Board

Registered Office :10, N.S.Road,Kolkata – 700 001. (M.Viswanathan)India. Company Secretary

04.AGM Notice 2012-13 of CIL_008-012.indd 008 7/25/2013 3:55:36 PM


NOTES:-

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. IN ORDER TO BE EFFECTIVE, THE PROXY FORM DULY COMPLETED SHOULD BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY - EIGHT HOURS BEFORE THE SCHEDULED TIME OF THE ANNUAL GENERAL MEETING. BLANK PROXY FORM IS ENCLOSED.

2. The Register of Members and Share Transfer Books of the Company will remain closed from Wednesday the 11th September’2013 to Wednesday, the 18th September’2013 (both days inclusive). The Final dividend on equity shares, as recommended by the Board of Directors, if declared at the Annual General Meeting, will be paid on and from 26th September, 2013 to the Members or their mandates whose names appear in the Company’s Register of Members on 18th September, 2013 in respect of physical shares. In respect of dematerialized shares, the dividend will be payable to the beneficial owners of the shares whose names appear in the Statement of Beneficial Ownership furnished by National Securities Depository Limited and Central Depository Services (India) Limited as at the close of business hours on 10th September, 2013.

3. Members are requested to:-

i. Note that copies of Annual Report will not be distributed at the Annual General Meeting.

ii. Bring their copies of Annual Report, Notice and Attendance Slip duly completed and signed at the meeting.

iii. Deliver duly completed and signed Attendance Slip at the entrance of the meeting venue as entry to the Hall will be strictly on the basis of the entry slip available at the counters at the venue to be exchanged with the attendance slip.

iv. Quote their Folio / Client ID & DP ID Nos. in all correspondence.

v. Note that due to strict security reasons, eatables and other belongings are not allowed inside the Auditorium.

4. Members are advised to submit their Electronic Clearing System (ECS) mandates, to enable the Company to make remittance by means of ECS. Those holding shares in physical form may obtain and send the ECS mandate form to M/s. Karvy Computershare Pvt. Ltd. Registrar & Share Transfer Agent (RTA) of the Company. Those holding shares in Electronic Form may obtain and send the ECS mandate form directly to their Depository Participant (DP). Those who have already furnished the ECS Mandate Form to the Company/ RTA /DP with complete details need not send it again.

5. Members may avail of the facility of nomination in terms of Section 109A of the Companies Act, 1956 by nominating in the Form-2B as prescribed in the Companies (Central Government’s) General Rules and Forms, 1956, any person to whom their shares in the Company shall vest on occurrence of events stated in the Form. Form-2B is to be submitted in duplicate to M/s. Karvy Computershare Pvt. Ltd., RTA of the Company. In case of shares held in dematerialized form, the nomination has to be lodged with the respective Depository Participant.

6. Corporate Members intending to send their authorized representative(s) to attend the Meeting are requested to send a certified copy of the Board Resolution authorizing their representative to attend and vote on their behalf at the Meeting.

7. Members are requested to notify immediately any change of address:

i. to their Depository Participants (DP) in respect of shares held in dematerialized form, and

ii. to the Company at its Registered Office or to its RTA, M/s. Karvy Computershare Pvt. Ltd.. in respect of their physical shares, if any, quoting their folio number.

8. The Board of Directors of your company in its meeting held on 14th March, 2013 had declared an interim dividend @ 97% (` 9.70 per share) on the paid-up equity share capital of the company which was paid on and from 25th March, 2013. Members who have not received or not encashed their dividend warrants may approach M/s. Karvy Computershare Pvt. Ltd. Registrar & Share Transfer Agent of the Company, for obtaining Demand Draft.

9. Pursuant to Section 205A read with Section 205C of the Companies Act, 1956, the dividend amount which remain unpaid / unclaimed for a period of seven years, are required to be transferred to Investors Education & Protection Fund of the Central Government. After such transfer, there remains no claim of the members whatsoever on the said amount. Therefore, Members are advised to encash their Dividend warrants immediately on receipt.




10. Pursuant to Section 619(2) of the Companies Act, 1956, the Auditors of a Government Company are to be appointed or re-appointed by the Comptroller and Auditor General of India (C & AG) and in terms of Clause (aa) of sub-section 8 of Section 224 of the Companies Act, 1956, their remuneration has to be fixed by the Company in the Annual General Meeting or in such manner as the Company in General Meeting may determine. The Members of your Company in its 27th Annual General Meeting held on 29th September, 2001 authorised the Board of Directors to fix the remuneration of Statutory Auditors.

11. All documents referred to in the accompanying notice are open for inspection at the registered office of the Company on all working days (barring Saturdays and Sundays) between 11.00 A.M to 1.00 P.M prior to the Annual General Meeting.

12. The address of Registrar and Share Transfer Agents of the company is as follows :

M/s. Karvy Computershare Pvt. Ltd.17-24 Vithal Rao NagarMadhapurHyderabad-500081E-mail id: [email protected]. no.: 040-44655000Toll Free No.: 18003454001Fax: 040 23420814

&

M/s. Karvy Computershare Pvt. Ltd.49 Jatin Das Road1st FloorKolkata 700 029E-mail id: [email protected]. no.: 033 2464 7231/7232/4891Fax: 033 2464 4866

13. The Explanatory Statement pursuant to section 173(2) of the Companies Act, 1956, in respect of Special Business is enclosed.

14. The Board of Directors of your company comprised of 5 Functional Directors, 2 Government nominees and 7 Independent Directors. As per Article No 33(b) of the Articles of Associations of your company Functional Directors of your company are not liable to retire by rotation at the Annual General Meeting. Government Nominees Dr A.K.Dubey and Smt Sujata Prasad were appointed as additional Directors during the year. Among the Independent Directors Prof S.K.Barua, Dr.(Smt)Sheela Bhide and Shri Kamal R Gupta are completing their tenure on 3rd August’ 2013 and Dr R.N.Trivedi, Dr Mohd. Anis Ansari and Smt Sachi Chaudhuri are completing their tenure on 23rd August’2013. Dr A.K.Rath, Independent Director on completion of his tenure ceased to be a Director of the Board from 26th April’ 2013. Hence none of directors is eligible for appointment/ re-appointment at the Annual General Meeting. In case of appointment of new Director(s) by the Ministry of Coal, Government of India, such Director(s) will be appointed as an Additional Director(s) by the Board of Directors under section 260 of the Companies Act 1956 until the next Annual General Meeting of the Company.


Date : The 26th June, 2013Registered Office :10, N.S.Road,Kolkata – 700 001. (M.Viswanathan)India. Company Secretary



EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956ITEM No 3.

APPOINTMENT OF DR A.K.DUBEY

Dr A.K.Dubey has been appointed as an Additional Director under Section 260 of the Companies Act, 1956 effective from 3rd April, 2013. He holds office upto 39th Annual General Meeting of the company. The company has received a notice in writing from a member pursuant to the provisions of Section 257 of the Companies Act, 1956 signifying intention to propose Dr A.K.Dubey as candidate to the office of Director. Dr A.K.Dubey, if appointed, will be liable to retire by rotation under Sections 255 and 256 of the Companies Act, 1956 and the Articles of Association of the company.

Dr A.K.Dubey aged 54 years belongs to Kerala cadre of lAS. He has held various positions in Government of Kerala and Government of India. He had been Secretary (Taxes), Secretary (Expenditure), Principal Secretary (Finance) and Principal Secretary (Forests and Wild Life) in Government of Kerala. He has served as Joint Secretary in Cabinet Secretariat, Ministry of Panchayati Raj and Ministry of Tribal Affairs in Government of India. He had also served as Registrar, University of Delhi (a Central University).

He holds directorship in Neyveli Lignite Corporation Limited.

He occasionally writes on various administrative matters in professional journals.

None of the Directors except Dr A.K.Dubey is interested or concerned in the resolution.

The Board of Directors consider that in view of the background and experience of Dr A.K.Dubey, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.

ITEM No 4

APPOINTMENT OF SMT. SUJATA PRASAD

Smt. Sujata Prasad has been appointed as an Additional Director under Section 260 of the Companies Act, 1956 effective from 3rd May’ 2013. She holds office upto the 39th Annual General Meeting of the company. The company has received a notice in writing from a member pursuant to the provisions of Section 257 of the Companies Act, 1956 signifying intention to propose Smt. Sujata Prasad as candidate to the office of Director. Smt. Sujata Prasad, if appointed, will be liable to retire by rotation under Sections 255 and 256 of the Companies Act, 1956 and the Articles of Association of the company.

Smt Sujata Prasad aged 55 years belongs to 1983 batch of Indian Civil Accounts Service. She has held senior managerial positions in different ministries and departments of the Central Government. This includes her last stint as the head of a Training/Research Institute of the Ministry of Finance (Government of India). She has spent 5 years with the Government of Bihar and an equal number of years as Senior Financial Adviser of the All India Institute of Medical Science.

Smt Prasad has co-authored a book on Health Security, edited an International Journal on Public Policy and has published several research papers on different aspects of gender, public health, poverty and development.

In addition to her current position as JS & FA, MoC. Smt Prasad is also JS & FA of the Mines, Corporate Affairs, Youth Affairs and Sports ministries.

She holds directorship in Hindustan Zinc Limited (HZL), Bharat Aluminum Company Limited (BALCO) and Hindustan Copper Limited (HCL).

None of the Directors except Smt. Sujata Prasad is interested or concerned in the resolution.

The Board of Directors consider that in view of the background and experience of Smt. Sujata Prasad, it would be in the interest of the Company to appoint her as a Director of the Company. The Board recommends the resolution for your approval.

ITEM No 5

APPOINTMENT OF SHRI ABHIJIT CHATERJEE

Shri Abhijit Chatterjee has been appointed as an Additional Director under Section 260 of the Companies Act, 1956 effective from 1st November, 2012. He holds office upto the 39th Annual General Meeting of the company. The company




has received a notice in writing from a member pursuant to the provisions of Section 257 of the Companies Act, 1956 signifying intention to propose Shri A.Chatterjee as candidate to the office of Director. Shri A.Chatterjee, if appointed, will not be liable to retire by rotation under Sections 255 and 256 of the Companies Act, 1956 and the Articles of Association of the company.

Shri A.Chatterjee aged 58 years has assumed the charge of Director (Finance), Coal India Limited from 01.11.2012. Prior to this, he was working as Director (Finance) in Central Coalfields Limited (CCL) from 08.03.2010. Before his joining CCL, he has worked in Bharat Earth Movers Ltd (BEML) in the capacity of General Manager, Chief General Manager and Executive Director (Finance) from 01.10.1997 till 05.02.2010.

He has rich experience in financial management of the company and has made significant contribution in BEML viz Treasury Management, Customs, Excise Duty, Service Tax, Insurance, Rail & Metro and Defence Product business marketing etc. Due to his efforts along with team members, BEML got benefit of around ` 8 crores in the area of Treasury Management. He was instrumental in arranging Marine-cum-storage-cum-erection Policy covering the risks of transit, storage, construction, fabrication, installation and commissioning in respect of Bangalore Metro Rail business for a period of 82 months from 18.02.2009 valued at ` 3.58 crores (approx) payable in 15 installments. He has also arranged Professional Indemnity Insurance to cover any risk arising out of professional negligence and errors in the design works from the period of commencement of work till 5 years after the date of issue of the performance certificate valued at ̀ 4.25 crores (approx) in 4 installments. These insurance covers were arranged for the first time in BEML by involving quotes for 10 underwrites in a very transparent manner within a period of 47 days only. He has also contributed in settling matters on Customs and Excise Duty related cases and as a result the company saved a substantial working capital of ` 54.86 crores.

On behalf of CCL, he has organized promotion of IPO floated by CIL. As a team leader of Coal Companies, he took up interest claim against HPGCL for delayed payment of coal dues and ensured quick, logical and favourable decision of Umpire in favour of Coal Companies. He has ensured improving realization from JSEB and TNVL. M/s. TNVL has signed FSA with CCL due to tremendous persuasion.

He has attended Senior Management course at MDI, Gurgaon and also undergone training at various Management schools at Europe. Mr. Chatterjee is a member of the Institute of Chartered Accountants of India.

He holds Directorship at South Eastern Coalfields Ltd and Eastern Coalfields Ltd.

None of the Directors except Shri A. Chatterjee is interested or concerned in the resolution.

The Board of Directors consider that in view of the background and experience of Shri A.Chatterjee, it would be in the interest of the Company to appoint him as a Director of the Company. The Board recommends the resolution for your approval.


Date : The 26th June, 2013Registered Office :10, N.S.Road,Kolkata – 700 001. (M.Viswanathan)India. Company Secretary



CHAIRMAN’S STATEMENT

Friends,

I am delighted to welcome you to the 39th Annual General Meeting of Coal India Limited (CIL). The Directors’ Report and Audited Accounts for the year ended 31st March, 2013, together with the report of Statutory Auditors, and report and review of Comptroller & Auditor General of India, are already with you.

1. Importance of Coal

Energy is a prerequisite in the economic development of any country. In developing countries, the energy sector plays a critical role in view of the ever-increasing energy needs. Enormous investments are necessary to secure the same.

India is one of the fastest growing economies of the world. Coal dominates the country’s energy mix. It contributes over 50% of India’s total primary energy production. The mineral is expected to continue playing a crucial role in meeting India’s future energy needs.

CIL accounted for about 81% of the total coal produced in the country during fiscal 2013. There appears to be no dearth of market for the mineral, if it can be produced at a reasonable cost on a sustainable basis. India’s coal industry shall continue its dominance as the primary source of energy for most part of the 21st century.

India’s ever-increasing demand for coal is expected to touch 980.5 Mt by 2016-17. Of this, the demand from the power sector constitutes about 70%. However, indigenous coal availability is projected optimistically at 795 Mt. Hence, major production constraints need to be addressed to boost production capacity. Some of the steps that need to be undertaken include enhancing drilling for coal exploration, fast-tracking land acquisition and R&R issues, avoiding delays in obtaining environmental and forestry clearances, timely completing construction of infrastructural facilities for coal evacuation and providing greater thrust on R&D activities in the coal sector. Unless these issues are resolved in a manner conducive to exploitation, extraction and expansion of coal reserves, there will always be a demand-supply gap for coal. To bridge this shortfall, coal needs to be imported.

2. Vision

The strategic vision of CIL is to place itself on a path of accelerated growth with enhancement in productivity, competitiveness and profitability, while meeting the growing demand of coal in the country in an environmentally and socially sustainable manner. The Board of Directors of CIL had approved the recommendations of KPMG and adopted the corporate plan titled ‘Vision 2020’. Vision 2020 envisages various measures aimed at improving coal supply and capability building. Necessary actions have been initiated to implement the suggestions. KPMG is currently engaged in providing implementation-related assistance to CIL.

3. Activities

We are the largest coal producing company in the world. We produced 452.21 MT during 2012-13.We produce coal through seven of our wholly-owned subsidiaries in India. Another wholly owned subsidiary, CMPDIL, carries out exploration activities for our subsidiaries. It also provides technical and consultancy services for our operations as well as to third-party clients for coal exploration, mining, processing and related activities. We have also established a wholly owned subsidiary in Mozambique, Coal India Africana Limitada (CIAL), to pursue coal mining opportunities in the country. We have our core competence across the entire coal business value chain, starting from exploration, planning and design operations, beneficiation and marketing. Our principal product is raw coal, primarily non-coking. We are also looking for diversification opportunities in areas of coal bed methane, coal gasification, coal liquefaction and power generation.

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4. Performance Highlights, 2012-13

We have achieved impressive results with significant growth in production, off-take and profitability during 2012-13. It indicates the robustness of our strategy to maximise coal dispatch to our esteemed consumers. This performance is particularly remarkable when viewed against the backdrop of extremely challenging demand-supply scenario prevailing in the country. We recorded an impressive growth of 32.1 MT in coal off-take, a growth of 7.41% over the previous year. Raw coal off-take touched 465.18 Mt during 2012-13 compared to 433.08 MT in 2011-12. The dispatch performance this year has reversed the usual trend of production exceeding off-take, which has soared coal production by about 13 MT in 2012-13. There has also been a growth of 16.4 MT in coal production over last year, a growth of 3.8%. Production of raw coal during 2012-13 was 452.21 MT as against 435.84 MT in 2011-12. Overburden removed during the year was 746.70 Million Cubic metres as against 735.14 Million Cubic metres in 2011-12, up by 11.56 Million Cubic metres.

We are one of the largest profit making and tax & dividend paying enterprises in India. Aggregate pre-tax profits for CIL and its subsidiaries increased by 17.42% from ` 21,272.66 crores in 2011-12 to ` 24,979.04 crores for 2012-13.

Your Directors recommended dividend payment of ` 8,842.91 crores at ` 14/- per share on 6316364400 Equity Shares of ̀ 10/- each, fully paid value at ̀ 6316.36 crores. Out of total dividend, Government of India gets ̀ 7,958.62 crores and other shareholders get ` 884.29 crores. (Previous year, Government of India received ` 5,684.72 crores and other shareholders got ` 631.64 crores).

5. Introduction of Mine-Developer-Operator

In order to step coal production to meet growing demand for coal, it has now been decided to work through the Mine-Developer-Operator (MDO) mode. We propose to take up seven mines in the first phase and expand later, based on experience.

Under this concept, MDO shall develop, operate the mine and be responsible for detailed designing, financing, procurement, construction, operations and maintenance of all infrastructures, including coal washery, loading arrangement etc. Further, the MDO/Participating Company will facilitate possession of land and R&R activities, preparation and clearance of EIA-EMP, and forestry clearance. However, CIL will directly obtain approval of EMP & FC. The MDO on the other hand will be responsible for environment monitoring and management, reclamation and mine closure (progressive and final).

All activities within the mine premises and till the loading of coal in rail wagons, according to agreed annual targets, shall be the MDO’s responsibility.

6. Accelerate the Power Generation from New Power Plants

Government of India, having considered the likelihood of commissioning further 60,000 MW, decided to revise the trigger level for coal supply from 50% to 80% of Annual Contracted Quantity. The Government also decided to revise the tenure of Fuel Supply Agreement from 5 years to 20 years. Accordingly, a Presidential Directive was issued to this effect on 4th April, 2012 to modify the Fuel Supply Agreements (FSA) for execution with new Power Plants having long-term Power Purchase Agreements (PPA) with the DISCOMs. Till 31st March, 2013, 61 units signed FSAs for 88.8 MTY.

7. Initiative for Overcoming Logistic Bottleneck

We came out with a scheme for supply of coal ‘As is – Where is’ basis to its power consumers under FSA, to be lifted by the purchaser by arranging their own logistics from the stock points. The scheme aimed at augmenting coal dispatch capacity, which is constrained due to various logistics issues restricting transportation to dispatch points.

The FSA offers similar provision for the Seller to offer coal upto 5% of the annual contracted quantity. For this, consumers use their own transportation arrangements, either by Road or Road-cum-Rail (R-C-R) mode in three coal companies, namely CCL, MCL and SECL. Logistics inadequacy in these three companies in terms of new rail connectivity has restrained coal evacuation potentials of these companies.



8. Growth Profile

Ongoing Projects

We have 148 on-going projects, costing ̀ 2 Crs and above, which are under different stages of implementation. The ultimate capacity of these projects is 446.75 Mty, with sanctioned capital outlay of ` 32,004.54 Crs.

Out of this, 85 ongoing projects contributed to the tune of 212.04 Mt. during the terminal year of XIth Five Year Plan, i.e. 2011-12. However, during the 1st year of the XIIth Five Year Plan, 90 ongoing projects contributed 260.80 Mt. The envisaged contribution during the terminal year of the XIIth Five Year Plan, i.e. 2016-17, is 335.46 Mt from 134 ongoing projects.

Out of these 148 ongoing projects, both forestry and environmental clearances have already been received for 90 projects. Environmental and forestry clearances are awaited for 9 and 34 projects respectively. For the remaining 15 projects, both forestry and environmental clearances are awaited.

Future Projects

A total of 126 projects, with an estimated capacity of 438.04 Mty, have been identified. These projects will be taken up during the XIIth Five Year Plan. Out of these future projects, 60 projects are envisaged to contribute about 88 Mt during the terminal year of the XIIth Five Year Plan, i.e. 2016-17.

Out of these 126 identified projects, PRs for 78 projects have already been formulated. Four projects, having an estimated capacity of 12.50 Mty with an investment of ` 2294.79 Crs, have been sanctioned during the XIIth Five Year Plan.

9. Forestry and Environmental Clearances

Forestry Clearance

During the XIth Five Year Plan, Forestry Clearances for 56 proposals, involving an area of 7095 Ha, have been obtained from MoEF. The contribution from such projects involving these 56 forestry proposals granted clearance was 77.5 Mt during the year 2012-13. So far, five forestry proposals covering an area of 538 Ha have also been cleared by MoEF during the first year of the XIIth Five Year Plan, i.e. 2012-13. The contribution from such projects involving these 5 forestry proposals was 0.85 Mt during the year 2012-13.

However, at present, 193 forestry proposals are awaiting clearances either at MoEF or at state levels. These projects together cover an area of 29500 Ha.

Environmental Clearance

122 environmental clearance proposals for a capacity of 207 Mty have been cleared by MoEF during the XIth Five Year Plan. So far, 30 environmental clearance proposals, for a capacity of 100 Mty, have also been approved by MoEF during the first year of XIIth Five Year Plan, i.e. 2012-13.

However, at present, 48 environmental clearance proposals, having a capacity of about 109 Mty, are awaiting clearances at different levels.

10. Other Strategies

To augment underground production, semi-mechanised Bord and pillar mining with Load Haul Dumper (LHD)/Side Discharge Loader (SDL) loading with continuous coal evacuation system are being planned. Universal Drilling Machines (UDMs) are also being deployed to increase the productivity of SDL/LHD mines. They also help to ensure safety of the workers in the mines. Mass production technology methods with Continuous Miner (CM) and Power Support Longwall (PSLW) faces, are now being planned to be introduced in phases in some of the underground mines. Man-riding system is being installed in underground mines to fully utilise shift hours. This is expected to increase productivity and reduce the arduous travelling time of the personnel in underground.




11. Coal Beneficiation

CIL operates 17 coal washeries with a total capacity of 39.4 Mty. Out of these, 12 are coking coal washeries with a total capacity of 22.18 Mty, while five are non-coking coal washeries with a total capacity of 17.22 Mty.

Contracts have been finalised for three more washeries. Besides, action to finalise two more washeries is in advanced stage. Further, 12 more washeries have been identified to be taken up during the XIIth Five Year Plan.

12. Foreign Venture initiatives

A. Activities of CIAL, Mozambique.

CIAL, a wholly owned subsidiary of CIL in Mozambique, has been operationalised in February 2012. An office has been set up in the city of Tete, Mozambique. A four member team of senior officers has been deputed. Various activities related to exploration of coal blocks have been initiated. Some of these activities are as follows:

i. Nearly 5,100 Mtrs of initial exploration drilling in the two allotted coal blocks have been completed till the end of March 2013. Shri Pratik Prakashbapu Patil, the Hon’ble Minister of State for Coal, Government of India, inaugurated this Initial exploration drilling programme for 10,000 metres in November 2012.

ii. A global tender for carrying out additional 30,000 metres of drilling in the allotted coal blocks has been floated in February 2013 and finalised in June 2013.

iii. We received environment clearance from the Government of Mozambique in July 2012 to carry out exploratory drilling and also completed geological mapping for the entire allotted coal block.

iv. To demarcate the concession area and locate the proposed exploratory boreholes, surveyors from CMPDI were engaged in Nov-Dec 2012. Major part of the work has since been completed.

B. Global expression of interest inviting proposals related to acquisition of overseas coal assets

Pursuant to the Govt. of India’s guidelines to acquire raw material assets abroad, a notice inviting proposals offering overseas coal assets to CIL was floated on 27th February, 2013. Number of proposals have been received and are being evaluated based on their marketing potential.

13. Safety – always a Priority

Safety is always our highest priority. Embedded in our mission statement, it is one of the major deciding factors in our overall business strategy. We have framed a well-defined policy to ensure safety in our mines. We meticulously plan and design all our operations, systems and processes, with due regard to safety to achieve targeted coal production. We endeavour to inculcate the best operational and safety practices. We encourage Participative Safety Management to promote a proactive safety culture and to improve awareness at every level. We have identified hazards and associated risks in every mining operation and have prepared safety management plan for every mine. Annual Safety Plan for each and every mine is also prepared at the beginning of each calendar year to assess safety in mining operations to be carried out in that year. We have also established multi-level monitoring mechanism to implement the Safety Policy.

Over the years, the safety standards of our mines have significantly improved due to sincere and collective commitment shown by the management and the workers. Relentless safety awareness drives help impart advanced and continuous training. These drives use the best technologies in the field of mining methods and strong oversight. Required assistance and support from several quarters are also contributed to this achievement. All these factors have helped to reduce serious accidents to a record low in 2012. We are not complacent and are continuing our efforts to ensure better safety in every sphere of our activities.

To improve safety standards, we initiated several measures in 2012-13. Along with on-going safety activities and initiatives, we also ensured that our operations comply to the statutory requirements.



14. Improving the condition of contractor’s workers

During this year, wages and social security of contractors workers were jointly deliberated and finalised, based on the recommendations of High Powered Committee consisting of the representatives of Central Trade Unions. This Committee was constituted in accordance with the decision taken in the meeting with Central Trade Unions held on 16.04.2010, in presence of then Hon’ble Minister of State (I/C) & SPI and in pursuant to the letter dated 28.03.2010 of Ministry of Coal.

The basic rate of wages of different categories of contractors’ workers engaged in mining activities are as under w.e.f 01/01/2013

Employee categories Basic rate (per day)

Unskilled ` 464.00

Semi-skilled/Unskilled supervisory ` 494.00

Skilled ` 524.00

Highly skilled ` 554.00

15. CIL’s R&R Policy, 2012

CIL recognises that its business activities have direct and indirect impact on the society, in which it operates. Therefore, as a sound business practice, it properly considers the interests of all its stakeholders, including the people affected by the project. In line with the above, we reviewed the earlier R&R Policy-2008 and revised the Resettlement & Rehabilitation Policy- 2012, which has been approved by the CIL Board in March, 2012.

The revised R&R Policy of CIL- 2012 has provided multiple options to the land losers. It also bestows more flexibility to the Board of Subsidiary Companies to meet unique R&R problems to acquire land faster.

16. Corporate Social Responsibility

Corporate Social Responsibility (CSR) lies at the core of all our operations. We have a well-defined CSR Policy which was introduced in June 2010. These policies were based on the guidelines issued by the Department of Public Enterprises for Central PSUs in April 2010. The same guidelines are also applicable to our subsidiary companies.

Our CSR activities mainly encompass the poor and the needy living in and around the project site and the HQs (within a radius of 25 Kms). Further, we also conduct CSR activities beyond mining areas, within the respective states with the due approval. CIL, being a holding company, executes CSR activities, which are beyond the jurisdiction of the subsidiary companies.

During 2012-13, we allocated ` 595.74 Crores (includes spill over amount) to undertake CSR activities at CIL and its subsidiaries.

We adopted CSR as a strategic tool for sustainable growth. In the present context, apart from investing funds for social activities, CSR at CIL also includes integrating business process with social ways.

17. Green initiatives

We are committed to follow all the environmental regulations and take necessary measures to mitigate the impact of mining and associated activities. We shall undertake the measures in a phased manner according to EIA/EMP of each project. We plant numerous trees every year. During 2012-13, we planted 15.86 lakh saplings.

Degraded land of opencast mines are restored by technical reclamation, followed by its biological reclamation. We have been monitoring reclamation work of 50 of our major OCPs, producing more than 5 Million Cubic metres (Coal+OB) every year and other OCPs once in three years through state-of-the-art technology of satellite surveillance. The satellite images reveal that land reclamation area increased by 5.27 Sq KM in 2012 in the 50 OCPs. We have undertaken initiatives in five subsidiaries to convert the reclaimed land into a cultivatable land with the help of agricultural universities.




We have initiated steps to install solar energy generation units on the rooftops of non-residential and residential buildings. These units are going to be connected to the grid. The objective is to conserve non-renewable energy resources and promote renewable energy.

18. Corporate governance

CIL complied with the conditions of Corporate Governance, as stipulated in the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India. It also complied with the conditions of Corporate Governance, as provided in Clause 49 of the Listing Agreement with the Stock Exchanges. As required under the said guidelines and provisions, a separate section on Corporate Governance has been added to the Directors’ Report and a Certificate regarding compliance of conditions of Corporate Governance has been obtained from a Practicing Company Secretary.

As a proactive measure, CIL has conducted Secretarial Audit for 2012-13 by a Practicing Company Secretary.

19. Expectation

I am confident that CIL shall continue to move to achieve greater heights in future, meet the expectations of the stakeholders as well as the nation at large with the dedicated performance at all levels.

20. Acknowledgement

On behalf of your Company’s Board of Directors, I wish to convey deep gratitude to you, our valued shareholders, for your continued support and trust. This motivates us to excel in all our pursuits and constantly create value for you as well as for the nation.

I appreciate the unstinted support and valuable guidance received from the Ministry of Coal, Government of India. I also express my sincere thanks to other Central Government Ministries and Departments, State Governments, all employees, Trade Unions, consumers and suppliers for their relentless co-operation.

Kolkata S. Narsing Rao

Dated : 15th July’ 2013 Chairman



5243

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06.Graphical Representation of CIL_019-022.indd 019 7/25/2013 3:56:30 PM


Coal India Limited. A Maharatna CompanyP

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Net Profit to Net Worth

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06.Graphical Representation of CIL_019-022.indd 020 8/5/2013 11:59:48 AM


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07.Operational Statistics 2012-13 of CIL_023-035.indd 023 7/25/2013 3:56:48 PM



FINANCIAL POSITION

(BASED ON CONSOLIDATED ACCOUNTS OF COAL INDIA LTD. & ITS’ SUBSIDIARIES) (` in crores)

OPERATIONAL STATISTICS As per Revised Schedule VI

For The Year Ending 31st March 2013 2012 2011

A) What is owned

Gross Fixed Assets 39010.67 38096.41 36714.12

Less Depreciation & Impairment (25544.91) (24656.12) (23870.81)

(1) Net fixed Assets 13465.76 13440.29 12843.31

(2) Capital Work-in-progress 3495.95 2903.38 2057.16

(3) Deferred tax Asset 2255.02 1194.06 873.23

(4) Non-Current Investment 1400.30 946.99 850.96

(5) Long-Term Loans & Advances 1181.36 1017.25 845.35

(6) Other Non-current Assets 74.17 69.29 76.33

(7) Current Assets

i) a) Inventory of Coal,Coke etc. 4301.16 4801.14 4439.82

b) Inventory of Stores & Spares etc. 1117.90 1126.45 1038.17

c) Other Inventories 198.77 143.69 107.62

ii) Trade Receivables 10480.21 5662.84 3456.98

iii) Cash & Bank Balances 62236.00 58202.78 45806.44

vi) Current Investments 994.66 1034.41 212.73

v) Short term Loans & advances 16188.76 13478.19 11180.14

vi) Other Current assets 4174.74 2965.50 2125.75

Total Current Assets (7) 99692.20 87415.00 68367.65

(8) Less Current Liab. & Prov.

(a) Short Term Borrowing — — 32.60

(b) Trade Payables 837.17 829.02 645.45

(c) Other Current Liabilities 16385.71 17832.16 13601.00

(d) Short Term Provisions 20446.94 15594.80 12436.19

Net Current Assets (7-8) 62022.38 53159.02 41652.41

TOTAL (A) 83894.94 72730.28 59198.75



OPERATIONAL STATISTICS (` in crores) As per Revised Schedule VI


B) What is owed

(1) Long Term Borrowing 1077.79 1305.35 1333.76

(2) Deferred Tax Liability

(3) Other Long Term Liabilities 3137.21 2647.03 2057.39

(4) Long Term Provisions 31144.35 28271.28 22460.79

TOTAL (B) 35359.35 32223.66 25851.94

C) Minority Interest 63.60 53.60 32.61

Net Worth (A-B-C) 48471.99 40453.02 33314.20

Represented by:

(1) Equity Capital 6316.36 6316.36 6316.36

(2) Pending Allotment — — —

(3) Reserves 17526.65 14035.64 11693.66

(4) Profit/Loss 24636.44 20105.60 15307.55

(5) Misc.Expenditure (D\Liab.) (7.42) (4.54) (3.37)

(6) Surplus/ (Deficit) of Joint Ventures (0.04) (0.04) -

Net Worth (1 to 6) 48471.99 40453.02 33314.20

Capital Employed 75488.14 66599.31 54495.72




OPERATIONAL STATISTICSCOAL INDIA LTD.

INCOME AND EXPENDITURE STATEMENT

(BASED ON CONSOLIDATED ACCOUNTS OF COAL INDIA LTD. & ITS’ SUBSIDIARIES) (` in crores)


A) Earned From :

1) Gross Sales 88281.32 78410.38 60240.90

Less Levies (Excise Duty & other levies) (19978.58) (15994.95) (10011.62)

Net Sales 68302.74 62415.43 50229.28

2) Other Income (a to e) 8746.69 7536.90 4872.14

a) Interest on Deposits etc. 6216.71 5317.77 2964.34

b) Dividend from Mutual Funds 140.49 27.97 0.33

c) Subsidy for Sand Stowing & Protective Works 79.51 67.48 76.83

d) Recovery of Transportation & Loading Cost 1469.02 1376.04 1218.88

e) Other non-operating Income 840.96 747.64 611.76

TOTAL (A) 77049.43 69952.33 55101.42

B) Paid to/Provided for

1) Employees Remuneration & benefits (a to e) 27320.78 26387.42 19851.78

a) Salary, Wages, Allowances ,Bonus etc. 18930.24 16571.73 13296.31

b) Contribution to P.F. & Other Funds 2291.46 1778.31 1697.84

c) Gratuity 1456.83 3944.09 1482.09

d) Leave Encashment 833.21 804.67 686.11

e) Others 3809.04 3288.62 2689.43

2) Accretion/Decretion in Stock 493.92 (381.04) (1214.97)

3) Welfare Expenses 622.43 317.60 381.81

4) Stores & Spares 6062.11 5504.07 5272.82

5) Power & Fuel 2333.48 2012.52 1749.48

6) Contractors (including Transportation & Repairs) 6624.37 5546.68 5281.86

7) Finance Costs 45.17 53.98 73.70

8) Depreciation/Amortization/Impairment 1812.97 1969.22 1765.40

9) Provisions & Write Off 927.10 1469.84 578.84

10) Overburden Removal Adjustment 3201.74 3693.89 2618.47

11) Other Expenses 2633.18 2196.64 2231.59

12) Prior Period Adjustment / Exceptional Items / Extraordinary Items (6.86) (91.15) 47.40

TOTAL (B) 52070.39 48679.67 38638.18



OPERATIONAL STATISTICS

(` in crores)


Profit/loss forthe year (A-B) 24979.04 21272.66 16463.24

Tax on Profit 7622.67 6484.45 5595.88

Profit/loss from discontinuing operation (0.01) (0.01) (0.01)

Proposed dividend 8842.91 6316.36 2463.38

Tax on Dividend 1323.23 1183.56 897.74

Transer to General Reserve 2508.92 2143.24 1471.94

Transer to CSR Reserve 220.82 231.22 168.12

Transer to Sustainability Development Reserve 22.78 — —

Reserve for Foreign Exchange Transaction (93.14) (35.87) 7.74

Adjustments — 151.64 —

Accumulated profit / loss from Last year 20105.60 15307.55 9449.12

Cumulative profit / loss transferred to Balance Sheet 24636.44 20105.60 15307.55

Cumulative profit / loss (Before transfer to Reserves) 27295.82 22595.83 16955.35





IMPORTANT FINANCIAL INFORMATION (` in crores)(As per Consolidated Audited Accounts) As per Revised Schedule VI


(A) Related to Assets & Liabilities

1) i) No. of Equity Shares (CIL) of ` 10 each 6316364400 6316364400 6316364400

ii) Shareholder’s Funds

a) Equity 6316.36 6316.36 6316.36

b) Reserves 17526.65 14035.64 11693.66

c) Accumulated Profit/Loss 24636.44 20105.60 15307.55

d) Misc. Expend.(D/Liab.) (7.42) (4.54) (3.37)

e) Surplus / Deficit of Joint Ventures (0.04) (0.04) —

Net Worth 48471.99 40453.02 33314.20

2) a) Long Term Borrowings incl. Current Maturities 1305.30 1527.38 1520.97

b) Long Term Borrowings excl. Current Maturities 1077.79 1305.35 1333.76

3) Capital Employed 75488.14 66599.31 54495.72

4) (i) Net Fixed Assets 13465.76 13440.29 12843.31

(ii) Current Assets 99692.20 87415.00 68367.65

(iii) Current Liabilities 37669.82 34255.98 26715.24

5) a) Sundry Debtors (net) 10480.21 5662.84 3456.98

b) Cash & Bank 62236.00 58202.78 45806.44

6) Closing Stock of :-

a) Stores & Spares (Net) 1117.90 1126.45 1038.17

b) Coal, Cokes etc. (Net) 4301.16 4801.14 4439.82

7) Average Stock of Stores & Spares (Net) 1122.18 1082.31 1062.86

(B) Related to Proft/Loss

1. a) Gross Margin 26837.18 23295.86 18302.34

b) Gross Profit 25024.21 21326.64 16536.94

c) Profit before Tax 24979.04 21272.66 16463.24

d) Net Profit (AfterTax) 17356.36 14788.20 10867.35

e) Net Profit (After Tax & Dividend) 8513.45 8471.84 8403.97




IMPORTANT FINANCIAL INFORMAT (` in crores)

As per Revised Schedule VI

(As per Consolidated Audited Accounts)


2) a) Gross Sales 88281.32 78410.38 60240.90

b) Net Sales (after excise duty & other levies) 68302.74 62415.43 50229.28

c) Sale value of Production 67808.82 62796.47 51444.25

3) Cost of Goods Sold (Net Sales-PBT) 43323.70 41142.77 33766.04

4) a) Total Expediture 52070.39 48679.67 38638.18

b) Employe Benifit & Expenses 27320.78 26387.42 19851.78

c) Stores & Spares 6062.11 5504.07 5272.82

d) Power & Fuel 2333.48 2012.52 1749.48

e) Finance Cost & Depreciations 1858.14 2023.20 1839.10

5) Average Consumption of Stores & Spares (gross) per month 505.18 458.67 439.40

6) a) Average Manpower employed during the year 364736 377447 390243

b) Welfare Expenses 622.43 317.60 381.81

c) Welfare Expenses per employee (` ’000) 17.07 8.41 9.78

7) a) Value added 59413.23 55279.88 44421.95

b) Value added per employee (` ’000) 1628.94 1464.58 1138.32





IMPORTANT FINANCIAL RELATIVE RATIOS

(As per Consolidated Audited Accounts) As per Revised Schedule VI


(A) PROFITABILITY RATIOS

1) AS % of NET SALES

a) Gross Margin 39.29 37.32 36.44

b) Gross Profit 36.64 34.17 32.92

c) Net Profit (PBT) 36.57 34.08 32.78

2) AS % of TOTAL EXPENDITURES

a) Employe Benifit & Expenses (Gross-Rev.) 52.47 54.21 51.38

b) Store & Spares(Gross-Rev.) 11.64 11.31 13.65

c Power & Fuel 4.48 4.13 4.53

d) Interest & Depreciation (Gross-Rev.) 3.57 4.16 4.76

3) AS % of CAPITAL EMPLOYED - - -

a) Gross Margin 35.55 34.98 33.58

b) Gross Profit 33.15 32.02 30.35

c) Profit before Tax 33.09 31.94 30.21

4) OPERATING RATIO (SALES-PROFIT/SALES) 0.63 0.66 0.67

(B) LIQUIDITY RATIOS

1) Current Ratio 2.65 2.55 2.56

(Current Asset/Current Liability)

2) Quick Ratio 1.93 1.86 1.84

(Quick Asset/Current Laibility)




IMPORTANT FINANCIAL RELATIVE RATIOS

(As per Consolidated Audited Accounts) As per Revised Schedule VI


(Net Sales / Capital Employed)

(C) TURNOVER RATIOS

1) Capital Turnover Ratio 0.90 0.94 0.92

2) Sundry Debtors (net) as no of months

a) Gross Sales 1.42 0.87 0.69

b) Net Sales 1.84 1.09 0.83

3) As Ratio of Net Sales

a) Sundry Debtors 0.15 0.09 0.07

b) Coal Stocks 0.06 0.08 0.09

4) Stock of Stores & Spares

a) Avg. Stock/Annual Cosumption 0.19 0.20 0.20

b) Closing Stocks in terms of no.of month’s consumption 2.21 2.46 2.36

5) Stock of Coal, Coke, W/coal etc.

a) As no of month’s Value of production 0.76 0.92 1.04

b) As no of month’s of cost of goods sold 1.19 1.40 1.58

c) As no of month’s Net Sales 0.76 0.92 1.06

(D) STRUCTURAL RATIOS

1) Debt : Equity Share Capital 0.17 0.21 0.21

2) Debt : Net Worth 0.02 0.03 0.04

3) Net worth : Equity 7.67 6.40 5.27

4) Net Fixed Assets : Net Worth 0.28 0.33 0.39

(E) SHARE HOLDER’S INTEREST

1) Book Value of Shares (`) (Net worth / No of Equity) 76.74 64.04 52.74

2) Dividend per Share (`) (` 10 from 2009-10) 14.00 10.00 3.90




BRIEF PROFILE OF DIRECTORS

Shri S. Narsing Rao (55) took over as Chairman, Coal India Limited with effect from 24th April 2012. Prior to the top post in the state owned Maharatna coal mining monolith, Shri Rao, an IAS officer of 1986 batch from Andhra Pradesh Cadre, was Chairman of Singareni Collieries Company Limited (SCCL), the AP based coal mining company since September 2006. Shri Narsing Rao as CMD of SCCL, a joint venture between Government of AP and Central Government, took the company up from a production of 36 Million Tonnes in 2006 to 53 MTs in 2011–12. Shri Rao had taken SCCL to a higher growth trajectory of 9%–10% from that of 2% to 3%. During his tenure at the helm of SCCL, the company experienced the first ever strike free year (2007–08). Singareni has witnessed substantial productivity gains during his tenure. A post-graduate in Chemistry and Economics, he also holds a post-graduate higher diploma in forestry. Before joining the IAS, he had undergone training in Forestry and Rural Development sectors. After joining the IAS, he had held various positions in the Government of Andhra Pradesh, both at the District Administration level and State Administration. Shri Rao has wide international exposure and his expertise includes consultant to the International Fund for Agriculture Development (IFAD), Rome, Italy and Chief Technical Advisor, United Nations Office of Project Services, Asia & Pacific regions. He has extensive international experience in poverty alleviation and rural development in South and South East Asia. He rendered technical advice to the Governments of Bangladesh, Nepal, Bhutan, Maldives and Myanmar. He lived and functioned out of Rome (Italy), Yangon (Myanmar), Kuala Lumpur (Malaysia) and Bangkok (Thailand). Shri Rao’s areas of interests include rural development, poverty alleviation, environment and ecology. He passionately worked for reforms in administration to make it responsive to the needs and aspirations of the communities. He is also a Director at International Coal Ventures Private Limited.

Shri R. Mohan Das (56) is the Director (Personnel & Industrial Relations) of our Company. He holds a post graduate degree in social work from Madurai University. Shri Das has also participated in the ‘Advanced Management Programme’ at Queens’ College, Cambridge, United Kingdom and the ‘Management Development programme’ at Wharton School, University of Pennsylvania, United States of America. Shri Das began his professional career over three decades ago with Bharat Heavy Electricals Limited in their human resources department. In the course of his career at Bharat Heavy Electricals Limited, Shri Das is credited with various human resource initiatives such as introduction of an ‘Integrated Human Resource Information System’ to usher in the concept of paper-less office in Nagpur unit and was involved in development and piloting ‘E-Enabled Performance Management System’ for officers with linkage to balance scorecard during his stint in the Bhopal office. Prior to joining our Company, Shri Das was the General Manager (Personnel & Administration) of the state owned Madras Fertilizers Limited, where he concluded long pending promotion policy agreement with unions. Shri Das has undergone training as a lead auditor for the ‘ISO Quality System’ and lead assessor for ‘Total Quality Management’. As Director (Personnel & Industrial Relations) of our Company, Shri Das is responsible for formulation and implementation of personnel policies of our Company. He holds Directorship at Western Coalfields Ltd and Central Coalfields Ltd.

Shri Nagendra Kumar (54) is Director (Technical) of our company. Shri Kumar has graduated in Mining Engineering (B.Tech – Mining) from Indian School of Mines, Dhanbad in 1980. He joined CCL as junior Executive Trainee in 1980. In his first 20 years in CCL, he has worked for almost 6 years as Manager and 7 years as Project Officer. He was transferred to ECL in 2001 in the same capacity and assumed the charge of General Manager in 2004 and Chief General Manager in 2007. Shri Kumar assumed the charge of Director (Technical), ECL on 24th July, 2009. Shri Kumar joined our company as Director (Technical) on February 01, 2012. He has spent most of his career in reviving difficult underground and opencast mines and has the experience of working with almost all kind of mechanization in underground and opencast. He was actively associated with indigenization of Long Wall Equipment and has presented a number of papers on its successful implementation. His latest achievement is the successful operation of Continuous Miner in Jhanjra Area matching World Standards in production and safety. Shri Kumar is a member of MGMI, IMMA and Institution of Engineers. He has travelled foreign countries like South Africa and China, France, Italy and Germany. Shri Kumar is fond of cricket, books, old melody songs and Rabindra Sangeet too. He is holding additional charge of Chairman cum Managing Director of South Eastern Coalfields Ltd. He holds Directorship at Bharat coking Coal Ltd, Central Mine Planning and Design Institute Ltd and International Coal Ventures Pvt. Ltd. He is also holding chairmanship of Coal India Africana Limitada.

08.Brief Profile of Directors 2012-13 of CIL_036-040.indd 036 7/25/2013 3:57:07 PM


Shri Bipin Kumar Saxena, (57) years has assumed charge of Director (Marketing) of Coal India Limited from 19th June, 2012. Prior to this he was Director (Technical) in Western Coalfields Limited, Nagpur from 7th March, 2008. An alumni of Indian School of Mines, Dhanbad, Shri Saxena is an experienced Mining Engineer and Administrator. He has completed his B.Tech (Hons) in Mining Engineering in 1978 from Indian School of Mines and First Class Certificate of Competency under Indian Mines Act in 1981. Shri Saxena has been serving the Coal Industry since more than three decades. Prior to elevation as Director (Technical) he has served in various capacities in Central Coalfields Ltd. since 1978. Thereafter he has served in large Opencast Mines of Northern Coalfields Ltd. till 1998. His contribution as successful Nodal Officer in implementation and prompt completion of the Mega Project of Amb river Diversion at Umrer Area is quite commendable. He has also served in different capacities in WCL at Chandrapur, Wani, Pench, Umrer and Wani North Areas. On promotion as Chief General Manager he was posted in Mahanadi Coalfields Ltd. in Technical Coordination Department and also in IB Valley Area. Shri Saxena has wide experience in Planning, Operation and Management of both Underground and Opencast Mines. Shri Saxena has visited United Kingdom in 1993 in connection with Environmental Engineering, visited Australia in 2007 with respect to appraisal of Mining in Australian Coal Industry, and visited Minsk, Belaz (Moscow) and Russian Mine sites as a part of Working Group Training in Russian Coal Mines from 21st July to 25th July, 2008. He has also visited Manila, Philippines from 18th to 22nd May, 2009 to participate in the programme on “Measuring & Mining Corporate Performance”. Shri Saxena is associated with several Professional Bodies. He holds Directorship at Northern Coalfields Ltd and Mahanadi Coalfields Ltd.

Shri Abhijit Chatterjee (58) has assumed charge of Director (Finance), Coal India Limited from 01.11.2012. Prior to this, he was working as Director (Finance) in Central Coalfields Limited from 08.03.2010. Before his joining in CCL, he has worked in Bharat Earth Movers Ltd (BEML) in the capacity of General Manager, Chief General Manager and Executive Director (Finance) from 01.10.1997 till 05.02.2010. He has rich experience in financial management of the company and has made significant contribution in BEML viz Treasury Management, Customs,Excise Duty, Service Tax, Insurance, Rail & Metro and Defence Product business marketing etc. Due to his efforts along with team members, BEML got benefit of around ` 8 crores in the area of Treasury Management. He was instrumental in arranging Marine-cum-storage-cum-erection Policy covering the risks of transit, storage, construction, fabrication, installation and commissioning in respect of Bangalore Metro Rail business for a period of 82 months from 18.02.2009 valued at ` 3.58 crores (approx) payable in 15 installments. He has also arranged Professional Indemnity Insurance to cover any risk arising out of professional negligence and errors in the design works from the period of commencement of work till 5 years after the date of issue of the performance certificate valued at ` 4.25 crores (approx) in 4 installments. These insurance covers were arranged for the first time in BEML by involving quotes for 10 underwrites in a very transparent manner within a period of 47 days only. He has also contributed in settling matters on Customs and Excise Duty related cases and as a result,the company saved a substantial working capital of ` 54.86 crores. On behalf of CCL, he has organized promotion of IPO floated by CIL. As a team leader of Coal Companies, he took up interest claim against HPGCL for delayed payment of coal dues and ensured quick, logical and favourable decision of Umpire in favour of Coal Companies. He has ensured improving realization from JSEB and TNVL. M/s. TNVL has signed FSA with CCL due to tremendous persuasion. He has attended Senior Management course at MDI, Gurgaon and also undergone training at various Management schools at Europe. Mr Chatterjee is a member of the Institute of Chartered Accountants of India. He holds Directorship at South Eastern Coalfields Ltd and Eastern Coalfields Ltd.

Dr A.K.Dubey (54) Additional Secretary, MoC has been nominated as a nominee Director in CIL Board with effect from 3rd April 2013. Dr. A. K. Dubey belongs to Kerala cadre of lAS. He has held various positions in Government of Kerala and Government of India. He had been Secretary (Taxes), Secretary (Expenditure), Principal Secretary (Finance) and Principal Secretary (Forests and Wild Life) in Government of Kerala. He has served as Joint Secretary in Cabinet Secretariat, Ministry of Panchayati Raj and Ministry of Tribal Affairs in Government of India. He had also served as Registrar, University of Delhi (a Central University). He occasionally writes on various administrative matters in professional journals. He hold directorship in Neyveli Lignite Corporation Limited.

Smt. Sujata Prasad (55) Joint Secretary & Financial Advisor, MoC has been nominated as nominee Director in CIL Board with effect from 3rd May’ 2013. Ms Sujata Prasad belongs to 1983 batch of Indian Civil Accounts Service. She has held senior managerial positions in different ministries and departments of the Central Government. This includes her last stint




as the head of a Training/Research Institute of the Ministry of Finance (Government of India). She has spent 5 years with the Government of Bihar and an equal number of years as the Senior Financial Adviser of All India Institute of Medical Science. Smt. Prasad has co-authored a book on Health Security, edited an International Journal on Public Policy and has published several research papers on different aspects of gender, public health, poverty and development. In addition to her current position as JS & FA, MoC. Smt. Prasad is also JS & FA of the Mines, Corporate Affairs and Youth Affairs and Sports ministries. She holds directorship in Hindusthan Zinc Limited (HZL), Bharat Aluminium Company Limited (BALCO) and Hindusthan Copper Limited.

Prof. S.K. Barua (62) is an independent Director on the Board of our Company. Prof. Barua holds a master’s degree in technology from the Indian Institute of Technology, Kanpur and has a doctorate in management from the Indian Institute of Management, Ahmedabad. Prof. Barua has been on the faculty of Indian Institute of Management, Ahmedabad, for more than 30 years and held various administrative positions including that of director of the Institute. At present he is Sr. Professor at IIM, Ahmedabad. Other than being an independent Director on the Board of our Company, Prof. Barua is also an independent director on the Board of corporates such as Torrent Power Limited, IOT Infrastructure and Energy Services Limited, Axis Bank, Axis Capital Ltd and Oil and Natural Gas Corporation Ltd.

Dr. (Smt.) Sheela Bhide (65) is an independent Director on the Board of our Company. Dr. Bhide holds a doctorate in international trade from the Institute of International Studies, Geneva and also holds a master’s degree in economics from George Mason University, United States of America, a master’s in public policy from John F. Kennedy School of Government, Harvard University, United States of America. Dr. Bhide joined the Indian Administrative Service in 1973 and in the course of her 36 year long career has held various posts such as Chairman and Managing Director, India Trade Promotion Organization, Ministry of Commerce, GoI, Additional Secretary and Financial Advisor, Ministry of External Affairs, GoI, Additional Secretary and Financial Advisor, Ministry of Defence, GoI and Joint Secretary, Ministry of Corporate Affairs, GoI. She also holds directorship in Northern Coalfields Ltd, Suryodaya Microfinance Pvt. Ltd, L&T Metro Rail (Hyderabad) Ltd and Gati-Kirtetsu Express Ltd.

Dr. R.N. Trivedi (65) is an independent Director on the Board of our Company. Dr. Trivedi holds a bachelor’s degree in technology from the Indian Institute of Technology, Kanpur and also holds a master’s degree in arts (economics), a doctorate in economics and a doctorate in science (agricultural economics) from CSJM University, Kanpur. Dr. Trivedi joined the Indian Administrative Services in 1972 and in the course of his career has held various significant posts such as Collector of Farrukhabad, Lakhimpur Kheri and Lucknow, Principal Secretary to the Government of Uttar Pradesh and Director General Training, Government of Uttar Pradesh. Dr. Trivedi was also the Managing Director of certain public sector undertakings such as, Uttar Pradesh Financial Corporation, Uttar Pradesh State Industrial Development Corporation and Uttar Pradesh Co-operative Spinning Mills Federation. Dr. Trivedi is an independent director in M/s. Frontier Springs Ltd., Kanpur and South Eastern Coalfields Ltd.

Dr. Mohd. Anis Ansari (64) is an independent Director on the Board of our Company. Shri Ansari holds a bachelor’s degree in arts, a bachelor’s degree in law and a master’s degree in law from Aligarh Muslim University, Aligarh. He joined the Indian Administrative Services in 1973 and in the course of his over three decades long career has held various significant posts such as Agriculture Production Commissioner, Government of Uttar Pradesh, Secretary, Department of Agriculture, Government of Uttar Pradesh, Principal Secretary of Labour Department and Rural Development Department, Government of Uttar Pradesh and Chairman and Managing Director of U.P. Food and Essential Commodities Corporation. Dr. Ansari has also been a member of the board of directors of Bombay Mercantile Co-operative Bank Limited. Dr. Ansari is presently the Vice Chancellor of U.P. Urdu, Arabi and Farsi University, Lucknow. Dr. Ansari is also a member of various social and cultural organizations, including All India Management Association, Lucknow and was the founder chairman of Asma Hussain Institute of Fashion Technology, Lucknow. Dr. Ansari has received numerous literary and other awards including the ‘Top Professional Manager of the Year Award’ for the year 1994 from the Institute of Marketing and Management, New Delhi and has published eight collections of his poems in Urdu and Hindi.



Shri Kamal R. Gupta (59) is an independent Director on the Board of our Company. He holds a bachelor’s degree in science from CSJM University, Kanpur and became a member of the Institute of Chartered Accountants of India in 1977. Shri Gupta has over 36 years of experience in the fields of taxation and finance consultancy. Other than being an independent Director on the Board of our Company, Shri Gupta is also on the boards of Corporate Consultants Private Limited and Govind Polymers Private Limited.

Ms. Sachi Chaudhuri (64) is an independent Director on the Board of our Company. Ms. Chaudhuri graduated in Economics (Honours), with subsidiary Mathematics from Presidency College, Calcutta University and has pursued Post Graduate studies in Economics with specialization in Econometrics, Statistics and Mathematical Economics from Calcutta University through Presidency College. She joined the Indian Revenue Services in 1975 and in the course of her career has held various significant posts such as Chief Commissioner of Income Tax, Delhi, Directorate of Income Tax (IT & Audit), Central Board of Direct Taxes, Commissioner of Income Tax, Joint Secretary, Financial Adviser, All India Council for Technical Education, Ministry of Human Resources Development, Joint Secretary level post in a Schedule ‘A’ public sector undertaking under the Ministry of Commerce, Government of India, Director (Finance), Department of Biotechnology, Ministry of Science & Technology. She was a faculty member at the National Academy of Direct Taxes, Nagpur and also a Departmental Representative before the Income Tax Appellate Tribunal. Ms. Chaudhuri has also held ex-cadre posts in the Cabinet Secretariat, Department of Biotechnology, Ministry of Science & Technology and Ministry of Finance. In addition, Ms. Chaudhuri was also the Executive Director (Vigilance) of MMTC Limited, and was responsible interalia for investigation of vigilance cases and submission of reports to the Central Vigilance Commission and other investigative agencies. Presently, Ms. Chaudhuri is also a special director on BIFR.

Shri A.N.Sahay (57) currently Chairman cum Managing Director of Mahanadi Coalfields Limited (MCL) , a wholly owned subsidiary of the Holding company Coal India Limited (CIL), has been appointed as a permanent invitee in the CIL Board with effect from 23rd April 2013. After graduation in Mining Engineering from IIT, Kharagpur in 1976, Sri A.N. Sahay joined Coal India Ltd. in Aug’1976. He has over 35 years of experience in Coal Industry covering Operations, Planning and Project implementation. He has extensive exposure to handling of international agreements in coal sector for project formulation and project implementation. He has successfully handled project execution in Tanzania for “Exploration of Mchuchuma coalfield and preparation of feasibility report for the mine and pit head thermal power plant”. He has worked as Coal Controller with Govt. of India, which entails administration of various Statutes like Colliery Control Order 2000, Coal Mines (Conservation and Development) Act, 1974 and related rules, Coal Bearing Areas Act 1957, Collection of Statistics Act 1953 etc. In addition, he has handled challenging task of monitoring and facilitating expeditious development of captive

coal india limited - moneycontrol.com · 2013. 8. 8. · will be held on wednesday, the 18th...

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